UBS: Expects HSBC (00011.HK) to have a 17% year-on-year drop in net profit in the first half of the year, rating it as "neutral" with a target price of 112 Hong Kong dollars.

Caijing APP learned that UBS released a research report stating that the earnings per share of HSBC (00011.HK) in the first half of this year is expected to decline significantly due to the compression of net interest income (NII) and the expected increase in expected credit loss (ECL) expenses. The bank stated that HSBC is currently trading at 1.3 times the one-year forward price-to-book ratio and maintains a "neutral" rating on the stock with a target price of 112 Hong Kong dollars. It is expected that the dividend yield of HSBC in 2025 will be 5.4% (based on the target price), and the buyback yield will be 1%.